3 types of accounts being closed as per the new Reserve Bank rules

Mumbai – In response to the rising cases of bank fraud across the country, the Reserve Bank of India (RBI) has introduced new measures to enhance the security of banking transactions. Effective from January 1^st , the RBI has decided to close specific types of accounts to safeguard the banking system and protect customers.

The three types of accounts being closed are:

1. Accounts that have not had any transactions for 2 years or more are classified as dormant. These accounts are highly susceptible to being targeted by hackers and fraudsters, making their closure a precautionary measure.

2. Accounts that consistently maintain a zero balance for an extended period are labelled as zero balance accounts. The Reserve Bank of India has instructed banks to close such accounts to reduce the risks of misuse.

3. Accounts that have remained inactive for 12 months or more are also made dormant. Account holders must contact their bank branch and complete necessary steps to reactivate these accounts; otherwise, the bank will proceed to close them.